7 week Europe itinerary over christmas??

Miserable. You skipped Budapest!!!

Yes, I would continue on to Budapest from Vienna, and fly back to Paris from there.
Reading between the lines, I would say you have a number of day trips planned, so allocate # nights accordingly.

Paris - 6 nights
Strasbourg - 4 nights
Lyon - 4 nights
Annecy - 3 nights
Bern - 4 nights
Innsbruck - 4 nights
Salzburg - 3 nights
Munich - 4 nights
Prague - 4 nights
Vienna - 4 nights
Budapest - 4 nights
fly to Paris - 2 nights

I certainly don't intend to be changing your itinerary. But this is what I would do differently - unless you have a reason to be in certain localities. I would drop Lyon and Annecy and instead go to Chamonix. That could be magic in winter. I would probably substitute Luzern for Bern. Another magic location. Then to Munich (more to see than in Innsbruck), Nuremberg, Prague, Cesky Krumlov - magical in winter, then Salzburg, Vienna, Budapest would be worth seeing if you are already so close in Vienna. It would be a long ride by train from Budapest to Strasbourg. Better to fly. If not good connection by plane then fly to Paris and either skip Strasbourg or go there by TGV from Paris.

Hahaha Budapest was on the list until last night when we thought we surely have to 'cut' something out.... But with this advice, we will look into an internal flight back to Paris!

Any other suggestions on must visit places or any places on this list that could be missed in winter? We have already decided that Vienna and prague would be 'better' then the south of France...

My son flew Budapest to Paris for about $200 last Christmas.

Check the dates for the Alsacian Christmas markets. They are magical. Stay in Colmar to visit some of the other villages; Strasbourg is a bit far away, but definitely worth seeing. It would be a shame to be in Alsace too early or too late for them. They do it up big, and it's just beautiful.

A friend recently told me how beautiful Paris and its markets are in December.

If you do decide on Budapest then the Christmas Markets open about the 15th of November. Not certain but I think this is a little earlier than in some cities.

Here are some photos of winter activities: http://1drv.ms/1miCsq2

Hi all,
Thanks for all the great advice. I actually had a look online and we can change our return flights to arrive in Paris and leave from Budapest or even Berlin for 700-800AUD (2 adults and 2 kids- 9&7) which looks be similar to an 'internal' flight and cheaper than a train back.... With this in mind we are considering:

Paris
Lyon
Annercy
Strasbourg
Nuremberg
Munich
Salzberg
Vienna
Budapest
Prague
Berlin

Any thoughts???

I'm sure you will have a great time. There are so many options that there cant be a right or a wrong. Since you have 7 weeks you might wear down with a lot of packing and unpacking. Another way to do it is to set up 3 or 4 bases and do day trips and over night trips so you will have a "home" to return to. Apartments can be cheap and you should be able to get discounts for week long stays.

For instance, all trains in Hungary cross through Budapest. So from Budapest you can go to Gyor, Eger, Pecs, Vac and Szentendre. Gyor, Edger and Pecs are great overnight trips and Vac and Szentendre are great day trips. This way you get to really dig down into a culture. Do something similar in France, Germany, Austria, etc......